Palladium International LLC;
The Financial Innovation Program aims to boost Georgia’s private sector by increasing access to diverse investment resources and innovative financial products. To achieve this, the program is employing a three-tiered approach, broken down into clear components:
- Component 1 focuses on enhancing the financial market’s regulatory environment and infrastructure;
- Component 2 looks at ways of expanding financial services;
- Component 3 places an emphasis on transaction advisors and the support they can provide Georgian businesses.
PMCG is leading the implementation of Component 1, under which it is conducting a landscape assessment to identify constraints in the financial market’s regulatory environment and infrastructure that hinder private sector access to efficient and diverse financial products and services.
PMCG will also establish a cross-sector Public-Private Advisory Council (PPAC) comprising local stakeholders to advise the Program on matters related to the expansion of innovative financial products and services in Georgia. Moreover, PMCG is assisting in the implementation of Component 2 and 3 activities through the engagement of short-term consultants.
Under Component 3, PMCG is helping to develop an investment mobilization platform. In this regard, it is analyzing business processes and supporting management decision-making. Under the same component, PMCG is also conducting a business advisory services (BAS) mapping assessment to design a corresponding grants pipeline. Specifically, the assessment will provide recommendations on grants to address system gaps, collect data on market fees, and motivate business engagement.
The Program aims to achieve the following outcomes:
- Additional financing of USD 325 million mobilized for Georgia’s private sector;
- Creation of 2,500 new jobs;
- Development of three new fintech solutions;
- Three private equity or quasi-equity instruments designed for non-bank financial institutions;
- Facilitation of transactions between 250 startups/SMEs and finance providers through business advisory service providers (BASPs); and
- Establishment of a master fund based on EU rules to catalyze the attraction of additional investment into Georgia.